GeneDx Holdings Corp.
GeneDx Holdings Corp. Fundamental Analysis
GeneDx Holdings Corp. (WGS) shows weak financial fundamentals with a PE ratio of 1151.84, profit margin of 0.52%, and ROE of 0.78%. The company generates $0.4B in annual revenue with strong year-over-year growth of 50.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WGS's fundamental strength across five key dimensions:
Efficiency Score
WeakWGS struggles to generate sufficient returns from assets.
Valuation Score
WeakWGS trades at a premium to fair value.
Growth Score
ExcellentWGS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentWGS maintains a strong and stable balance sheet.
Profitability Score
ModerateWGS maintains healthy but balanced margins.
Key Financial Metrics
Is WGS Expensive or Cheap?
P/E Ratio
WGS trades at 1151.84 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WGS's PEG of 11.52 indicates potential overvaluation.
Price to Book
The market values GeneDx Holdings Corp. at 8.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 75.14 times EBITDA. This signals the market has high growth expectations.
How Well Does WGS Make Money?
Net Profit Margin
For every $100 in sales, GeneDx Holdings Corp. keeps $0.52 as profit after all expenses.
Operating Margin
Core operations generate 2.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.78 in profit for every $100 of shareholder equity.
ROA
GeneDx Holdings Corp. generates $0.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GeneDx Holdings Corp. generates limited operating cash flow of $33.31M, signaling weaker underlying cash strength.
Free Cash Flow
GeneDx Holdings Corp. produces free cash flow of $15.52M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.54 in free cash annually.
FCF Yield
WGS converts 0.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1151.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.008
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How WGS Stacks Against Its Sector Peers
| Metric | WGS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1151.84 | 29.43 | Worse (Expensive) |
| ROE | 0.78% | 800.00% | Weak |
| Net Margin | 0.52% | -20145.00% (disorted) | Weak |
| Debt/Equity | 0.39 | 0.30 | Weak (High Leverage) |
| Current Ratio | 2.71 | 4.64 | Strong Liquidity |
| ROA | 0.42% | -17936.00% (disorted) | Weak |
WGS outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GeneDx Holdings Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-57.86%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
52.36%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
58.82%
Industry Style: Defensive, Growth, Innovation
High Growth